Diploma soars again on strong results as Footsie edges lower

DEALMAKING Diploma stole the FTSE 100 limelight today as its shares scaled new heights on the back of another upgrade to earnings forecasts.

The industrial components supplier has built its success around buying quality small and medium sized businesses with the potential to deliver strong returns.

It has more than doubled in size since 2019 and is now worth well over £5 billion, with shares up another 5% or 216p to 4118p after today’s half-year results.

Diploma, which is focused on the sectors of seals, controls and life sciences, now expects revenues growth for 2024 of about 16%.

Its latest progress came as the FTSE 100 index edged a single point lower to 8432.67, with the prospect of US inflation and UK unemployment updates leaving blue-chip investors in no mood to chase down Friday’s intraday all-time high.

Alongside Diploma, British Airways owner IAG lifted another 2.9p to 184.1p after Peel Hunt raised its price target to 240p following the recent strong first quarter results. And at the start of a big week for results in the telecoms sector, Vodafone rose 0.7p to 70.1p and BT Group lifted by 1.9p to 107.3p. BAE Systems was the biggest faller, dropping 3% or 42p from last week’s record to stand at 1352p.